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U.S. Special Envoy Jared Kushner and Kirill Dmitriev, a close adviser to Russian President Vladimir Putin, have held talks about bringing a U.S. investor into the Nord Stream gas pipelines to Germany, five people with knowledge of the situation told Reuters.
Such a deal would let U.S. investors profit from energy flows to Europe once the war in Ukraine ends, Reuters reported. Kushner, who has been trying to broker a Russia-Ukraine truce, views doing business as central to restoring peace.
The pipelines are sanctioned by the United States and the EU, and Germany, Europe's biggest energy consumer, says any restart is not wanted, setting up a potential rift between Washington and its European allies.
Kushner and Dmitriev have met in Moscow and New York in recent weeks. It was unclear to what degree they discussed Nord Stream then, but two people said the topic remains on the agenda.
"Any deals will have to be negotiated by Russia with DFC (U.S. International Development Finance Corporation) and Treasury and must benefit United States taxpayers and companies," a White House official said.
The official said there had been "no Nord Stream discussions recently."
A U.S. official said a deal is unlikely in the medium term given the obstacles. Trump could waive or soften sanctions, but that would become harder if Democrats win control of Congress in November's midterm elections.
A spokeswoman for Germany's economy and energy ministry told Reuters that the Nord Stream and Russian gas are sanctioned in Europe and that Germany has found alternatives. Any reopening would require government approval, which is not desired, she said.
"This threatens to be a dirty deal that will cost Europe dearly," said Michael Kellner, a German lawmaker who oversaw energy policy after the Ukraine invasion.
"Americans and Russians will share the profits," he said.
Germany's coalition government opposes a restart, while the far-right Alternative for Germany (AfD) supports it. Dmitriev is set to meet the AfD leadership early next year to discuss resuming Russian gas sales.
Poland's leadership is watching the talks but remains firmly opposed, according to one person familiar with the government's thinking.
The company controlling the pipelines is 51% owned by Russian state energy giant Gazprom, with 31% split between two German entities and the rest held by a French and a Dutch firm.
The German shareholders want to keep their stakes if Gazprom sells, one person said.
Before Russia's invasion of Ukraine in February 2022, Germany bought more than half its gas from Russia through the two Nord Stream pipelines, which were damaged in a series of underwater explosions in September 2022.
Kushner and Dmitriev have also discussed the sale of Lukoil-owned businesses in Europe and elsewhere, from oil refineries to petrol stations, two other people said. A consortium of the DFC and investors from Qatar and the UAE would buy the assets, while U.S. authorities would lift sanctions, the sources said.
"On Lukoil, Steve (Witkoff) and Jared (Kushner) worked with DFC to negotiate a substantial upfront payment and profits interest for the United States," a White House official said.
Days after the Moscow meetings, Kushner said in Kyiv that he backed "prosperity agreements" to encourage peace, as debate over Nord Stream's future adds to European mistrust of Russia's motives.
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